Best mutual fund for tax saving
DSIJ IntelligenceCategories: MF Unlocked, Mutual Fund
The tax filing deadline has been extended and suggests a good time to invest in the tax-saving funds. Here is a list of best equity-linked savings scheme (ELSS) that you can consider investing.
On account of the pandemic, the due date for filing the income tax returns for FY 2019-20 (AY 2020-21) is extended to November 30, 2020, as a part of COVID-19 relief measures. Therefore, you can grab this opportunity to invest in an equity-linked saving scheme (ELSS) for saving tax under section 80C. Here is a list of the best ELSS you can consider investing in for tax saving purposes.
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Top 5 ELSS: Returns Profile (in per cent) |
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Funds |
1 Year |
2 Year |
3 Year |
5 Year |
10 Year |
|
Canara Robeco Equity Tax Saver Fund |
8.48 |
4.19 |
6.76 |
7.52 |
10.52 |
|
BOI AXA Tax Advantage Fund |
16.35 |
-0.16 |
5.05 |
7.59 |
9.36 |
|
BNP Paribas Long Term Equity Fund |
4.43 |
2.26 |
2.60 |
4.91 |
11.09 |
|
Invesco India Tax Plan |
6.21 |
-0.58 |
4.56 |
7.06 |
11.75 |
|
Union Long Term Equity Fund |
5.75 |
0.49 |
2.70 |
3.55 |
- |
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Top 5 ELSS: Risk Profile |
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|
Funds |
Sharpe |
Sortino |
Beta |
Standard Deviation |
|
Canara Robeco Equity Tax Saver Fund |
0.32 |
0.45 |
0.82 |
27.23 |
|
BOI AXA Tax Advantage Fund |
0.61 |
0.85 |
0.73 |
24.42 |
|
BNP Paribas Long Term Equity Fund |
0.18 |
0.26 |
0.78 |
25.47 |
|
Invesco India Tax Plan |
0.24 |
0.34 |
0.90 |
29.07 |
|
Union Long Term Equity Fund |
0.23 |
0.33 |
0.87 |
28.14 |
ELSS is one of the best avenues available for tax saving purposes. In fact, it is designed in a way to help you save tax along with long-term capital appreciation. While, the other avenues such as public provident fund (PPF), National Pension System (NPS), etc. are designed purely as a retirement saving tool rather than as a tax-saving tool.
Further, if you are an aggressive investor then, opt for Canara Robeco Equity Tax Saver Fund and if you are a conservative investor, then you can go for BOI AXA Tax Advantage Fund.